Category: Taxes

New ObamaCare regulations to increase tax revenues by adding paperwork to small businesses will sock businesses with onerous regulations. “An Internal Revenue Service watchdog warned Wednesday the paperwork burdens on small businesses may outweigh the benefit of tax collections generated as part of the new health-care law. Starting in 2012, about 40 million businesses, charities and other entities will be required to report to the IRS payments they make to suppliers and service providers, the IRS Taxpayer Advocate Service said in its midyear report to Congress.”

In addition to the direct costs of ObamaCare’s $500 billion in new taxes, there are also indirect costs from the new tax regulation. Section 9006 of the law puts vast new reporting requirements on businesses, forcing them to dramatically increase their administrative costs as they now have to report nearly every single business relationship.

ObamaCare, with its various new or increased taxes on middle-class Americans, would violate many times over President Obama’s pledge to not raise “any form of taxes” on those making less than $250,000.

Obamacare would offer major financial rewards for couples who live together but avoid marriage — and it’s extreme marginal tax-rates on a marriage’s second income would provide a strong incentive for the lower-earning spouse (most often the woman) to leave the workforce.

The Administration has been using taxpayer funds to have the IRS promote ObamaCare under the guise of informing the public about the effects of the new law. But if the Administration is really just trying to inform and not to propagandize, why isn’t the IRS advertising the new tax on indoor tanning services, set to start July 1st?

A former CBO Director says that ObamaCare would likely raise deficits by $600,000,000,000 more than the CBO projects, could result in 40 million more Americans being shifted from employer-provided to government-provided insurance than the CBO projects, and would impose such high effective marginal tax-rates on those who are shifted onto government-provided insurance that it would be very hard for them to pursue the American Dream of making a better life.

Though ObamaCare’s “Cadillac plan” tax was designed to affect only employers with extravagant health benefit plans, an analysis by the global professional services company Towers Watson, using data from its 2010 Health Care Cost Survey, reveals that more than 60% of large employers’ health-care plans could be subject to this tax when it goes into effect in 2018.

Medical device manufacturers say they would have to lay off workers and curb the research and development of new medical tools as a result of ObamaCare’s 2.3 percent tax on medical devices — a tax which would cost these companies an estimated $20 billion over the next decade.